Styrene Market Morning Insights

I. Key Focus Points

1. Oct 12: Houthi rebels continued attacks on Saudi Arabia, with instability in the Middle East driving up supply risks and pushing international crude oil prices higher. NYMEX WTI crude oil futures (November contract) rose by USD 1.89/bbl to USD 93.74/bbl, a week-on-week increase of +2.06%. ICE Brent crude oil futures (December contract) rose by USD 1.93/bbl to USD 106.65/bbl, a week-on-week increase of +1.84%. China INE crude oil futures (December 2026 contract) fell by CNY 8.9 to CNY 709.5/bbl during the day session but rebounded by CNY 24.7 to CNY 734.2/bbl in the night session.
2. On Oct 12, trading activity in the Asian styrene FOB market was generally weak. RMB-denominated prices declined, while the USD market saw strong wait-and-see sentiment, closing lower for the day. FOB Korea settled at USD 1,450–1,460/ton (average price down by USD 30); CFR China settled at USD 1,390–1,400/ton (average price down by USD 30).
3. On Oct 12, compared to the previous trading day: Theoretical production-sales profit for integrated plant enterprises decreased by CNY 446 to CNY 2,314/ton; theoretical production-sales loss for non-integrated plant enterprises increased by CNY 105 to -CNY 515/ton.

Core Logic: Yesterday's sharp rise in crude oil prices did not significantly boost styrene. Styrene futures opened slightly higher in the night session before oscillating with a weak trend.

II. Price Table

Notes:

1. Units: Brent crude oil in USD/barrel; CFR Northeast Asia ethylene in USD/ton; Pure benzene and Styrene in CNY/ton.
2. Prices for pure benzene and styrene represent the average closing prices in mainstream markets.
3. All RMB prices in the table above are spot exchange rates including tax.
4. The change rate refers to the period-over-period percentage change.

III. Market Outlook

Styrene: Yesterday's significant surge in crude oil prices failed to provide clear support for styrene. In the night session, styrene opened slightly higher and then traded in a range. Market prices were pressured by news of some overseas styrene capacity returning, sluggish export negotiations recently, and expectations of domestic supply recovery. Furthermore, negative feedback from downstream industries was evident, with utilization rates declining and persistent resistance to high raw material costs. In the short term, the styrene market is likely to oscillate with a weak trend. However, port inventories remain at historic lows, maintaining a tight physical market structure, and supply-demand equilibrium remains tight.

IV. Data Table

Notes:

1. All data in the table represents weekly styrene data; ↘ indicates downward pressure/expectation, ↗ indicates upward pressure/expectation.
2. Styrene inventory data for Jiangsu ports is released before 15:00 on Monday of the reporting week.
3. Styrene inventory data for East China ports is released before 17:00 on Monday of the reporting week.
4. Styrene operating rate data is released before 18:00 on Thursday of the reporting week.
5. Styrene sample enterprise inventory data is released before 17:00 on Thursday of the reporting week.